AI is much bigger than you think.
It has transformed the way people live, travel, and communicate.
Every time you find the best route on Google Maps, search for information online or talk to a customer service chatbot, you rely on AI to make the most helpful decision for you.
But AI is young. And it’s evolving fast.
So fast that we don’t know the full implications of the AI revolution yet.
But be sure that it could be more transformational than the internet.
And it could make a lot of early investors immensely rich.
In our view, AI will be the biggest trend of this decade—if not this century.
What Microsoft’s OpenAI Deal Means
Microsoft has just confirmed that it made a “multi-billion” investment in OpenAI, an artificial intelligence startup that became famous when it released its ChatGPT model.
ChatGPT can produce text and articles. It has already passed bar exams and an Ivy League MBA exam.
Why does Microsoft need OpenAI?
It is not about text generation. Well, not only about it.
Microsoft wants to change its business model and products.
Yes, you heard this right.
One of the most innovative and successful companies in the world wants to change itself and evolve to the next stage.
It wants to use AI to transform its products. From Microsoft Office to its software development programs and search.
OpenAI might potentially help Microsoft unseat Google as the world’s leading search engine.
In other words, the implications of the OpenAI deal are huge.
What Does It Mean for Businesses?
Almost any business needs some form of AI to improve its operations.
From inventory management and accounting to customer service, delivery, and forecasting.
The businesses that will not keep up pace with the AI revolution could fade into non-existence.
Some businesses are better suited for AI adoption than others.
In our view, they will be the most direct beneficiaries of the AI revolution.
Here are some of the features investors should look for in a business that would make it AI-friendly. Companies with these features could see a massive boost in profitability if they adopt AI.
First, companies that perform a lot of routine tasks. These could be easily automated by artificial intelligence and robots. Customer service and mass-scale production and delivery are the areas where AI could potentially add a lot of value.
Second, companies going through a transformation. Change never stops, but to make the best decisions, businesses need reliable inputs and a process in place to arrive at the best conclusion.
AI models can simplify that task, especially if there is a lot of data to process. Software companies or finance businesses that deal with billions of data points to make the next important decision will employ AI for assistance.
Third, recruitment. Large organizations that employ hundreds or thousands of people need AI to make sure that the best candidates get their jobs. At the end of the day, humans will also play a role. But as with any situation with a lot of data going into decision-making, recruitment will be improved by AI. And recruitment companies need to leverage AI to make sure that they provide the best services for their clients.
Investors will have plenty of options to play the AI trend, which will be one of the biggest ones of this century. We hope that the list above helps you understand the power of cutting-edge AI technology and what businesses should do to use it to their advantage.
Thank you for your loyal readership,
The Financial Star team